vonnie: 30 minutes until the close on bloomberg markets. ♪ mark: we are going to take you from new york to london, covering stories out of for lynn and washington. here are the top stories we are following on the bloomberg and from around the world. in politics, president to president. donald trump defends his immigration crackdown as backlash spreads around the globe. we will find out how european companies are responding. >> it is a huge week for central banks. will the banks rise or stay the course? and the next step on brexit as the u.k. parliament gets set to vote on article 50. the chairman of parliament so lacked -- part of an select

committee. we are 30 minutes away from the end of the monday session. donald trump's executive order holding, immigration is reverberating around the world. look at these declines we are seeing. by 2.8%. portugal 2.6%. greece is down by 3.5% today. the other three below that are rising against the dollar. portugal 10 year, italy two-year. in the far two columns. a big piece of data, germany inflation accelerating. the light line is german inflation, 1.9% versus 1.7%. the highest rate since july 2013.

2% was the forecast. the other is the greek number from spain and germany, all below that is eurozone -- all below the eurozone. does that put some discussion it to play when it comes to the balance sheet? ecb, germans hoping -- with a mere zero deposit rate in connection taking place in germany as well. about winding down its bond buying program. german inflation number plays into that's nicely. let's get to spain gdp. look at that .7% maintaining the same pace of growth. below the .8% in the first two quarters, the government

struggles to approve the budget of this year in a highly fragmented parliament after losing his majority. a cross party agreement to get the bill approved. economy has outperformed. most economists expect a as temporary year tailwinds and impact of the reform space. economic confidence hitting in january. see, the highest reading since march 2011. patients seem to be running low in germany where large scale and purchases were criticized from the stark officials -- from the start officials.

it's not time yet to discuss exit strategies. headline inflation is rising. highs level since 2010. let's get over to the markets desk. we have all three major averages now. this also breaks that streak of very small moves, relatively small moves in the s&p 500. we have this chart of the daily moves here. we have the big down move. since then we have remained in this range where we have no move up or down by 1% until today. as we seehat streak

concerns over the administration policies. also by a selloff in commodities. take a look at tech firms. outspoken. a big drag on the overall averages. we are seeing a gain in the yen versus the u.s. dollar. the 10 year yield down two basis points. and seeing a big up move, although historically low levels. this isct of all of financials are under pressure. america, theyf tend to move in tandem with rates, rates going down. financials going down as well.

one other item to mention is we just got some headlines that was set to chose cash said to have chosen the nyc. -- set to have chosen the -- they don't show much reaction to that. that hotly anticipated ipo. vonnie: thank you for that. we really appreciate it. a headline now, the president will visit on thursday -- visit wisconsin on thursday. -- visit wisconsin on thursday to talk about the economy. we did get in -- we did get an executive directive. there will be two regulation rollbacks for every regulation.

mark: let's get to the controversial travel ban. global reaction from foreign leaders. chancellor angela merkel had this to say earlier. >> the necessary fight against terrorism does not justify in any way a blanket suspicion against people of a certain faith and people of the muslim faith, or people from a certain origin. now, tonying us kushne -- it is a tricky one. you speak out you risk drawn fire from trump. if you don't you have employees up in arms. it is a delicate balance. guest: i don't think there is an easy answer here for chief executives. many of whom made personally be upset about this order.

this is a president who has no qualms about taking on businesses directly and individually in a very forceful way, whether that is on twitter or elsewhere. large company does not want to be on the wrong side of the white house a must it is absolutely necessary. we did see the tech sector speak up quite be humanly -- quite vehemently. a lot of companies are staying silent. vehemently. >> to be expect them to stay silent on this? here you go, there it is. we have many employees from the main countries. we do business all over the region. it will continue. continue to essentially work with the u.s. administration.

it was a delicate balancing act. he says lots of things about the value of diversity, that ge is proud to employ people from all over the world. what you will not find is any specific criticism of this policy. it is indicative of this take thisl -- indicative of tricky balancing act. one of them is policy, the other is the implementation of the policy. i have been seeing the of limitation, which has been very confusing, which is what gives them real cause. to ask you about global leader reactions. we got some reaction out of africa. of reaction from countries that know a lot about this kind of thing, particularly angela merkel. is right, she has doubled down today.

there was a statement from her spokesman over the weekend. but merkel herself stepped out today and basically said at a news conference this measure from the white house is discriminatory against muslims. pale ifway beyond the you're talking about fighting terrorism, which trump said today. it is not in tune with international obligations to help refugees. this is very much in tune with the stands she has taken, which trump has vilified throughout european refugee crisis. vonnie: what about european companies? obviously there is a lot of u.s. multinationals commenting. we just heard from tony about leaders in different countries commenting.

do the places where those companies are based, are they are worriedf they about this executive action in the u.s.? guest: we haven't heard from a lot of european companies. european countries are largely staying out what is rightly an , i doan domestic debate think it is worth emphasizing every big american company is by definition a big global company at places like google and goldman sachs have tens of thousands of employees all over the world. they have to consider the views of those employees as well. >> how does this play into the election merkel will essentially ?attle the social democrat that is the big news as of last week. schultz saying when

it comes to trump's immigration policy and how is that playing into the election later this ear? guest: social democrats are the junior partner in merkel's government, critical more so than merkel. but it is hard to be critical with the chancellor of the biggest economy saying that the united states is wrong and taken a misstep. is veryultz said today interesting and it is something that merkel has not articulated. there are forces out and he cited trump and nigel farage , putting the eu at risk of destruction and he followed on by saying this is germany's biggest market. we are one of the world's top three exporters. he was talking about the

discriminatory issue or migration issue. direct economic argument than merkel would surely agree with if asked. mark: bloombergs germany government editor in the berlin bureau. we will hear more from the chief executive. we will get more on the trump ban as policies are impacting business. donohoe hastney more from our newsroom. courtney: resident trump will announce his choice to the -- choice to fill the supreme court seat. spoke in a meeting with small business leaders. president trump: the decision i have made, very big decision on the united states up, that is going to be announced tomorrow

night from the white house at 8:00. a person who is unbelievably highly respected, and i think you will be very impressed with this person. courtney: the president has narrowed his shortlist to two judges. -- u.s. is working on an evaluation on whether u.s., china -- could survive a nuclear strike and keep operating. pentagon spokesman says it is too early to pass on any details. do quebec police say they not know the motive for a deadly attack on a mosque. six killed and eight gunmen opened fire at riyadh canada prime minister calls it a terrorist attack on muslims. global news 24 hours per day powered by 2600 journalists and

analysts in more than 120 countries. this is bloomberg. vonnie: thank you for that. it is a busy week for central banks. the upcomingabout decision from the fed, the bank of england, and bank of japan. this is bloomberg. ♪

mark: live from london, i'm mark barton, just about 15 minutes away. vonnie: i am vonnie quinn. is -- it is a big week for central banks. thursday from the bank of england, joining us with what to watch is senior client fully a

manager fixed income strategist at oppenheimer funds. is there likely to be too much change between now and the and of the week as to what those three major central banks are doing. >> i think there have been a couple of people who think that maybe we are nearing lift off as we get the fiscal stimulus packages. maybe the fed could go faster. and i think the ecb side could be interesting. -- startrt hitting at hinting at not a continuation, that can also be a big market mover. to the federals reserve, there is a big banner in the sense they have no idea what fiscal policy they are going to get. and it may not even happen until 2018.

>> that is the reason why i think the federal reserve is going to air on the side of caution. i do think we will get three hikes that it will go until the end of the year. hike theis an earlier federal reserve can respond. do for their projections are much faster growth than in higher inflation policy in the u.s.. think you have to give it the first 100 days. >> the fed is waiting for the full impact of the trump policy. you look at equities, i know you are above that. are we beginning to discount the potential negative side of trump qualities today? >> i think people are going to be talking more and more about what is the fed's action function to these various policies? if you policies that end up

harming growth, then the federal reserve is likely to be much easier. it is unclear what policies are coming out of the administration. that chatter still on the market. on the other side you still have people that think the fed is not going to hike this year at all. i think that is being too pessimistic. this morning that the inflation is near the fed's target of one point seven percent. right now corn inflation is 1.7%. then the federal reserve might speed up just a little bit. glaxo have the german inflation data today, which was 1.9% in three -- one .9%, strongest in three and a half years. 1.9%, the strongest in 3.5 years. are we seeing a shift in the debates? guest: i think that is what the markets are looking for.

what mario draghi talked about in the press conference and the timing about when we are going to start thinking about it, if he hands that 2018 may be off the table in the not-too-distant future, then clearly the markets are not going to like that. there are going to be higher yields with the german boon. less than 1%, they have a lot of room to move higher. >> you see chart 2693 is the -- ar index and then how far is it? at -- i think we conceals we can see yields at 3%. there's one more leg up on the dollar here. at some point in the not-too-distant future there will be some impetus that is likely to change the direction of the dollar, particularly market currencies.

that may be mario draghi talking about the program. >> the euro could suffer tremendously? >> the other way around. if the ecb is talking about getting rid of the program with a stronger euro policy. that would mean stronger euro. >> where would it go? is not going to end up -- we are probably going up to 120. two orcould probably see three figures of mario draghi suggests that. ahead, boris johnson speaking in parliament about trump's emigration -- trumps immigration order. he's going to explain what it for dual citizens paid he says it is a highly controversial order.

secretary boris johnson address in the house of commons. this is bloomberg.

mark: boris johnson was speaking moments ago. this is emily thornberry, she is responding to a statement made by the foreign secretary boris johnson in the wake of donald trump's executive order, halting for immigration over the weekend. johnson says all bridge passport can travel to the united states. he said he has assurances from the u.s. embassy on u.k. passports. u.s.ys ties with the overwhelmingly to the benefit of the u.k.. of course theresa may, the prime minister was criticized when she

appeared in turkey on that news conference. she was essentially asked to give her opinion on donald trump. essentially criticized the u.s. a day later. emily thornberry is addressing the house of commons. boris johnson says all british passport holders can travel to the united states. equities in the wake of president trump at the end of last week. , theleins on wall street biggest declines since october. this is bloomberg.

the money moving into the german market. unicredit one of the egg corporate stories today. the date is similar 28. -- thenot adequately

bcc's concern from investors last month. -- what a rebound for a titan banks. this is something a bit lighter, but i did love it. this is called msci emerging market exchange. over the last four years, this $21 billion etf hasn't had a tension. thishad able to repeat amazing winning streak. it has been a combination of low and diversification with

over 2000 stocks. inhad its first appreciation 2016. bonnie, it is not looking good over there. that is a look at the dollar index two. particularly, following that executive order friday from president trump which let people wondering what was going on. othere stories and countries that are helping the dollar lower. the turkey lira is 2% stronger. is some tweets from the central banks and according isanalysts, the downgrade

more more news item out of the way. from turkeyting that the u.s. 10 year yield down. let's take a look at the g-20 matter movers. lower afterndexes the first round of elections. whichrse, the s&p 500 hasn't been down since october by 1% or more. the dollar index being weaker is the yen.hings like france and italy also lower. courtney donohoe has more. courtney: president trump has

signed an executive order aimed at cutting regulations for small businesses. meanwhile, the dodd-frank thinking reform was called a disaster. president trump will also supreme his choice for court tomorrow night. there has been an opening since last february when antonin scalia a died. it is called being one of the worst terror attacks in canada ever. , come in chilled six people five others wounded. two of them fighting for their lives. joe calls it a terrorist attack on muslims. brexit negotiator

says there is no reason to hold up talks with the u.k. trade discussions can be held even though two sides are uniong about breaking the -- breaking with the union. mark: the u.k. parliament beginning negotiations on brexit. present donald trump should not receive a full stay. down withday, i sat and discuss the latest and brexit. -- with brexit. >> the administration did not -- about

who had tojudges rule you can do for them and out appears that this doesn't order -- this doesn't apply to them. you would think that any administration, you might have worked out beforehand what you would actually mean and to whom it would apply and that does not appear to have happen in this case. mark: let's talk brexit. is the god government -- the government rushing it through? i will be voting for the bill .o trigger article 50 for me, it is issue of

democracy. we have a crisis of confidence in politics. if parliament were to turn around and say we don't think you knew what you were doing we are not going to leave the european union in and we would have a crisis at however, what the referendum determined is that it did not decide the terms we would leave and if you look at the amendments that have been put down to the bill, there are a lot that relate to the governments ago shading objectives. mark: when it comes to amendments come out what is likely to get her -- get through?

>> i would hope that parliament would vote for that. you're about to embark on the most important negotiation in decades. parliament keep performed because parliament does not intend to be a bystander, parliament intends to be a participant. i suspect we will find out what is going on anyway. how binding is white paper? , you keep the process referring to you said this. >> i'm sure that is what

parliament will want to do. the customs union. in effect what theresa may said want, commercial policy. withuld like to stay tariff and barrier free trade with the other member states. how will the 27 react to that? this sounds like a have your cake and eat it or basel. since the government has made it absolutely clear that it attaches the highest priority to , most sayee trade they have attached to that too.

or deciding on reflection, we should remain in the customs union. that depends on how the negotiations go. that is important to businesses who rely and have gotten used to withoutflow of goods too much paperwork and obstacles. jeremy corbyn says you ife to vote for the bill and a vote against the bill, could the labour party imploding to this question mark >> no. look, we have clear views of party. we have to respect the outcome. therefore, you have to give effect that the court case was not about whether we are leaving. say members of

parliament feel strongly about this. new labour party's position is clear. theve no doubt at all hall's will vote to trigger article 50 because this is essentially about whether you respect the outcome or not. johnson -- over one million signatures saying trump should not be invited from coming to the u.k.

this year. four shots and saying it is come.y right for him to vonnie: i think the main question here is if people had .ny trouble traveling he says that there will be no .ifference to passport holders whether you want to risk it or not is another question. for thompson on lives ago. president trump will announce his replacement for supreme

court justice antonin scalia tomorrow night. this is bloomberg.

♪ live from london and new york, i'm vonnie quinn. mark: this is the european close. let's look at some of the biggest business stories in the news. supportlds don't president trump's travel ban. and fields say that on aware of any ford employs -- cted by the duration the report emphasizes stronger

growth and inflation will view the -- julie debate over the program. -- will remain the main location for most of dye was operations. president trump announced he will reveal his nominee for supreme court justices tomorrow night at 8:00 p.m. the administration is looking for someone like the late antonin scalia up. thanks for joining. at the end of last week, it from one of was

-- the president says even evangelicals will be happy. >> the other name to keep an eye on is tom hardeman. generally with fairly conservative track records. know theret do you positions on hot topic items like abortion or gun control? things have done some againstuing legalization. on guns, tom hardeman has been the seconde for

amendment. mark: how controversial of a pick woodworm primer be -- william pryor be? he had more controversial sayings that go beyond interpreting the law. on abortion he says that rosie wade is the worst -- he considers it the murder of unborn children. he has talked about the nation being a christian nation founded on christian values. beenther two have conservative on reading the law. events withve the

regards to president trump's immigration policy. had he they have upended or change the dynamic of the confirmation process? remain to be seen. at a random, democrats will start talking about fixated power an executive overreach, making sure a new justice will , donaldng to say no trump, you went too far. anything in the background on how they would act on that. it will be at minimum a topic in the confirmation process. mark: we have had -- vonnie: we have had eight of nine justices for your. what are some of the decisions they will have to make? >> the court has not scheduled

.rguments potentially we could have a church state case, transgender rights. certainly voting rights, the power of the president purred all of those things will come up the next few years. vonnie: thank you. -- it says the result would have actually been positive. the additional negative amounts to about $1 billion. the ecb demanding improved plan for dealing with its bad loans. for shoring up

finances. they it may not adequately address concerns about credit quality. it is af that, has said net loss for 2016 of about 11.8 billion euros.

italy haslines out of announced a loss for 2016 of 11.8 billion euros. this is a body that was set up by time banks to put money into various lenders that needed fresh capital.

these, thehout results would have been positive. on results will be released february 9. this comes on additional news of shares down by 5%. shares already down. for the news today it is going to announce a loss of last year. basically it boils down to the numbers of one is bigger than they originally laid out. they are another one billion to that. the loss for the year is going to be bigger than previously said. today --

mark: the ecb wants a better plan for dealing with the bad .oans block? a big stumbling >> it is one more hurdle they have to get over. the big thing here is can they get the capital rate done? block? that was set up for this court quarter -- set out for this quarter. just -- is $16.5 market value billion. it is very close.

>> this was the interstate fun the time set up to kind of step endefore the state had to this is part of that additional billion they are adding on today. how much, but it is part of it. at wheret take a look european equities today. shares up by 50%. stocks falling today. immigration reverberating around the world. bloomberg markets continue. this is bloomberg.

vonnie: noon in new york, 5:00 p.m. in london. mark: welcome to bloomberg

markets. ♪ mark: we're going to take you from washington to berlin the next hour. u.s. stocks having their worst points.he dow down 200 microsoft, amazon among the worst performers. potential for follow from president trump's immigration policy. immigrationing the -- companies work to move quickly to denounce the order. facts speaking up against the ban.

say